Goldman bumps up previous gold forecasts....Goldman sees gold at $575
JOHN PARTRIDGE
Tuesday, February 21, 2006
Increased investor demand for gold last year, and the prospect it will continue to rise have persuaded the European arm of U.S. investment dealer Goldman Sachs Group Inc. to bump up its price forecasts for the yellow metal by 28 per cent this year and 44 per cent for next year.
Peter Mallin-Jones, a London-based metals analyst for the firm, said Tuesday he is forecasting bullion prices will hit an average of $550 an ounce this year and $575 an ounce in 2007, up from their previous forecasts of $430 and $400, respectively.
“Gold investment demand increased 114 per cent (to 610 tonnes) in 2005 and recent trading and exchange reports suggest strong trends continuing in 2006 due to a combination of abundant global liquidity, concerns over all major currencies, U.S. current account deficit and U.S. housing market,” he said in a research note by way of explanation.
Mr. Mallin-Jones is also forecasting that the gold price will fall back to $485 an ounce in 2008, rather than to $350, as he previously called for, but has left his 2009 forecast unchanged at $350.
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